Five things to know about the US$1.9t Covid-19 relief bill

THE US House of Representatives on Wednesday passed the US$1.9 trillion Covid-19 relief bill, one of the largest economic stimulus measures in American history.

Named the American Rescue Plan Act of 2021, the bill hands President Joe Biden his first major victory in office.

Here are five things to know about the mammoth pandemic relief bill, which forecasters expect will supercharge US economic recovery:

1) Stimulus package expected to boost global economy

On Tuesday, the Organisation for Economic Co-operation and Development (OECD) sharply raised its 2021 global growth forecast as vaccine deployment and the US stimulus programme greatly improve economic prospects.

The Paris-based organisation expects global economy to grow by 5.6 per cent, an increase of 1.4 percentage points from its December forecast. Laurence Boone, chief economist of the OECD, told AFP that world recovery will be largely carried by the US, thanks to the stimulus package.

2) Individuals to get US$1,400 each in stimulus cheques

Singles earning under US$75,000 and married couples making less than US$150,000 will receive US$1,400 direct payments per person. Each dependent will also be given US$1,400. These payments will gradually be reduced once those income levels are exceeded, and phased out completely when an individual's income exceeds US$80,000.

3) US$160 billion for vaccine and testing programmes

The bill includes US$160 billion for vaccine and testing programmes to curb the spread of Covid-19 and stop the pandemic. The funding will help create a national vaccine distribution programme that offers free vaccines to all US residents, regardless of immigration status.

4) States, local governments to get US$350 billion in aid

The bill will give a US$350 billion lifeline to state, local and tribal governments. The amount will help cover budget shortfalls caused by shutdowns to contain the virus. It will also help state and local governments that have faced higher costs and lower tax revenue during the pandemic.

5) Inflation concerns

US Treasury Secretary Janet Yellen on Monday dismissed fears that the US$1.9 trillion package will cause an inflation problem. In the case that it does turn out to be inflationary, there are tools to deal with that, she said.

Ms Yellen also reiterated her expectation for the relief plan to return the US to "full employment" next year. Payrolls in the US remain nine million lower compared with the peak before the pandemic hit.

READ MORE: What's in the US$1.9t stimulus Bill Joe Biden is about to sign